In a recent report released by crypto asset manager and research firm CoinShares, it was revealed that institutional investors have been withdrawing hundreds of millions of dollars from investment products due to the ongoing tariff war initiated by President Trump. This “calamitous” trade conflict has had a significant impact on the sentiment towards digital assets, resulting in consecutive weeks of outflows totaling a staggering $795 million.
The negative sentiment surrounding the tariff war, which began in early February, has led to record outflows of $7.2 billion from digital asset investment products. This has effectively wiped out almost all year-to-date inflows, leaving only $165 million remaining. However, a late-week price rebound following President Trump’s temporary reversal of the tariffs has helped lift total assets under management to $130 billion, marking an 8% increase from their lowest point in April.
Bitcoin (BTC) bore the brunt of the outflows, losing $751 million in just one week. Ethereum (ETH) products also experienced significant outflows of $37.6 million during the same period. Other popular cryptocurrencies like Solana (SOL), AAVE, and SUI also saw substantial outflows of $5.1 million, $0.78 million, and $0.58 million respectively. Despite these losses, some altcoins did manage to attract minor inflows.
Smaller altcoins like XRP saw inflows of $3.5 million, while Ondo, Algorand, and Avalanche received inflows of $0.46 million, $0.25 million, and $0.25 million respectively. This indicates that while the overall sentiment towards digital assets may be negative, there are still pockets of interest in certain altcoins.
As the market continues to navigate the uncertainties brought about by the tariff war, it is essential for investors to stay informed and monitor price actions closely. By subscribing to platforms like X, Facebook, and Telegram, investors can receive timely updates and alerts directly to their inbox. Keeping track of price movements and staying informed about the latest developments in the crypto space can help investors make informed decisions in these challenging times.
Overall, the recent outflows from digital asset investment products highlight the impact of external factors like trade conflicts on the crypto market. Despite these challenges, there are still opportunities for growth and investment in the digital asset space, especially for those who remain vigilant and informed.